Vol. II Templates TAX-ANALYSIS Available now
The CRE tax mechanics every sponsor should already know.
A practitioner reference and companion Excel model covering the four tax mechanics that drive after-tax returns in CRE – depreciation, 1031 exchanges, cost segregation, and opportunity zones. Plain-English explanations with the calculations behind them.
Definition
What it is
4 mechanics
Depreciation, 1031 exchange, cost segregation, opportunity zone.
PDF + XLSX
PDF reference document + companion Excel model for live scenarios.
$37
$47 retail. 14-day refund.
Audience
Who this is for
Sponsors planning exits
Run 1031 vs. taxable-sale economics before listing. Understand the replacement-property timeline and identification rules so the exchange option stays live.
LP allocators evaluating deals
Pressure-test sponsor after-tax IRRs. Confirm cost-seg savings are realistic for the property type and that OZ holding-period assumptions match the structure.
Operators with rolling portfolios
Build a depreciation tracking schedule across multiple assets; manage cost basis through serial 1031 exchanges without losing the carryover trail.
Solo investors
Understand what your CPA is doing on the K-1, why basis matters at sale, and which mechanics are worth their compliance cost on a smaller portfolio.
Inclusion
What's in the file
- MACRS class-life reference by asset type
- Straight-line vs. cost-segged depreciation comparison
- Bonus depreciation schedule (current law + phase-down)
- 1031 like-kind rules + identification windows
- Replacement-property basis carryover mechanics
- Section 1250 recapture vs. 1245 recapture
- Opportunity zone deferral + basis step-up timeline
- Cost-seg ROI calculator (compliance cost vs. NPV)
- After-tax IRR comparison: taxable sale vs. 1031 vs. OZ
- Practitioner notes on common CPA disagreements
Reference
FAQ
Is this tax advice?
No. This is practitioner commercial commentary on CRE tax mechanics. Filing positions, accounting elections, and entity-level structuring are decisions for a qualified CPA. The reference exists to make those conversations sharper.
How current is it?
Each release reflects current IRC and Treasury guidance as of the publication date. Major statutory changes (TCJA sunsets, OZ extensions, depreciation phase-downs) trigger an update, which ships free to existing buyers for 12 months.
State tax treatment?
Federal mechanics only. State tax is too jurisdiction-specific to cover well in a single template; the State References utility on the site flags state-level non-conformity issues to know about.
Refund policy?
14-day refund if the file is materially different from what was described, corrupted, or not delivered correctly. Email support@valoreregistry.com.
Pricing
Pricing
Retail at release $47
Founders' price (first 14 days) $37
Single ZIP delivery: PDF reference + companion XLSX model. Free point-update releases for 12 months. Informational only – not tax, legal, or investment advice. Engage qualified counsel for every filing position.
Implementation
How to use Tax Analysis
Six steps from county tax-bill pull to a 10-year tax projection feeding the UW Workbook. Plus practitioner tips on reassessment-on-sale mechanics, abatement step-down modeling, and the year-2 NOI surprises that come from missing reassessment shock.
A. Six steps
- 1
Download the Tax Analysis pack
You receive a DOCX questionnaire (lead the diligence call from this) plus an XLSX projection model (10-year tax burden with reassessment + abatement + escalation). Save into the deal folder. Suggested naming:
Tax_Analysis_<Deal>_<YYYY-MM-DD>.xlsx. - 2
Pull the most recent 3-5 years of tax bills
Source: county assessor / municipal tax collector for the asset address. Capture: tax year · assessed value (land + improvements separately if available) · millage rate · total tax · any abatement / exemption applied. Three years of history minimum to spot a trend; five years to spot a reassessment cycle.
- 3
Enter the assessment + millage projection assumptions
Inputs: current assessed value · expected reassessment year (most jurisdictions have a cycle — annual / triennial / on-sale) · post-reassessment assumption (% of acquisition price, or market-based reassessment policy) · millage rate growth (historical 3-5yr CAGR) · abatement schedule (if applicable: type, duration, step-up).
- 4
Run the 10-year projection + sensitivity
The model projects: assessed value year-over-year · effective tax year-over-year · total tax burden cumulative · abatement / PILOT credit schedule · reassessment shock scenarios (low / base / high). The sensitivity tab shows annual tax burden under each reassessment policy scenario.
- 5
Stress-test the abatement / PILOT expiration
Most CRE tax abatements (HTC, PILOT, LIHTC-adjacent, opportunity-zone benefits) have explicit expiration mechanics. The "Abatement Shock" tab models year-by-year tax burden when the abatement steps down or expires. This is the most overlooked tax line in CRE underwriting — projecting flat taxes through abatement expiration is the most common modeling error.
- 6
Feed the projection into UW + ongoing servicing
Underwriting: paste the 10-year tax line into the UW Workbook's Operating Assumptions tab. Servicing: pair with the Tax & Insurance Servicer agent (forthcoming Q4 2026) to track reassessment notices, abatement compliance filings, and re-run the projection when assumptions change.
B. Practitioner tips
- Reassessment-on-sale states (CA, NY, others): the acquisition triggers a reassessment in the next tax year. Project this as a step function, not as a smooth growth rate. Missing this is a common source of year-2 NOI surprises.
- Greenbelt / agricultural-use rollback: if the asset was agricultural and is being converted, prior-year tax savings can be clawed back. Check with the county before assuming the rollback is small.
- Tax bills sometimes lag 6-18 months behind the assessment cycle. The "tax year" on the bill and the "assessment year" are not always the same. Read the bill carefully.
- Property type matters: in some jurisdictions, multifamily is taxed differently than commercial; opportunity-zone overlays add abatement; brownfield credits stack with other incentives. The questionnaire walks through the major variants.
- Pull the assessor's methodology note if available. Some jurisdictions publish their income-approach assumptions (cap rates, vacancy, expenses) — knowing those tells you whether to appeal an assessment.
- Don't use Zillow or public-record databases for current assessed value. Pull from the assessor's own database (most have online lookup). Third-party databases lag and miss reassessments.
C. Scope & limits
- Not a tax advice tool. Tax strategy (1031 exchange, opportunity-zone structuring, depreciation acceleration) requires a CPA. This model projects tax burden; it does not optimize tax position.
- Not for transactional tax (transfer tax, mortgage recording tax, mansion tax). Those are one-time at acquisition; this is the recurring property-tax projection.
- Not a substitute for a tax-appeal advisor. If the analysis suggests an over-assessment, an attorney or tax-appeal consultant runs the actual appeal.
- Does not handle multi-jurisdiction allocations (a property spanning two tax jurisdictions). Single-jurisdiction analysis only.
D. Pairs with
-
Tax & Insurance Servicer
Agent (forthcoming Q4 2026)
Owns the ongoing tax-monitoring cycle: tracks reassessment notices, abatement compliance, re-projects when assumptions change.
-
Tax Analysis Skill
Skill (forthcoming Q4 2026)
Reads the questionnaire + tax bills + assessor data; produces the 10-year projection automatically.
-
Tax Abatement Model
Template (available now)
For deals where abatement / PILOT is the central economic driver, the Tax Abatement Model is the deeper sister template.
-
UW Workbook
Template (available now)
The 10-year tax projection feeds directly into the UW's Operating Assumptions; do not project taxes inside UW separately.
-
Insurance Matrix
Template (available now)
Tax and insurance are usually reviewed together for operating-expense modeling and lender escrow setup.
Quarterly refresh. Free re-download for 12 months from purchase.
14-day refund if the file is materially different from what was described, corrupted, or not delivered correctly.
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